The front months sold off about 20 cents, gradually through the day, bringing the 2014 strip below $4.00 again, despite several periods of severe cold this year, and a cold degree day total to date.
With storage now at the very bottom of the 5 year range, and a record draw anticipated on the next report, a further sell-off seems unwarranted. Storage should end January at 2,000 BCF (+/- 150), and on average another 500-600 BCF would be burned in February, bringing storage to a lean but manageable 1,100 to 1,400 BCF by April 1, well below last year. Here are the comps that inventory will face in the remainder of the season:
